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Yes, you can hand configure email alerts from MSFT one customer at a time. This can take 30 minutes to hours per customer. See link: https://docs.microsoft.com/en-us/microsoft-365/compliance/alert-policies?view=o365-worldwide
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SaaS Alerts is going to provide you with the following differences:
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Alert functionality for customers with as low as a business basic 0365 subscription
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Maintain a history of those alerts and provide reporting to your customers (unlimited retention of data from SaaS Alerts VS only 30 day from MSFT)
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Provide alerts regarding your customers' other SaaS Applications and correlate information between them and MSFT Products
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Surface alerts MSFT will ignore
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Allows the MSP to directly increase revenue per customer with higher margin than increasing MSFT licensing to achieve similar alerting capability
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With all of the security issues MSFT is facing lately, do you really want MSFT policing MSFT?
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